Al Ain Distribution Company Water and Electricity ...

1 Al Ain Distribution Company Water and Electricity Distribution and supply licence 1 January 2014 ED/L01/007 Document Approved by Recipients of controlled copies ED/L01/007 Director General AADC Bureau AADC Water and Electricity Distribution and supply licence Author Document Issue Revision Issue date Approved by AR / MD ED/L01/007 1 5 1 January 2014 NSC Page 1 of 91 Al Ain Distribution Company Water and Electricity Distribution and supply licence licence ED/L01/007 Issued 1 January 2014 AADC Water and Electricity Distribution and supply licence Author Document Issue Revision Issue date Approved by AR / MD ED/L01/007 1 5 1 January 2014 NSC Page 2 of 91 licence development Previous issues Document No. ED/L01/007, Issue No. 1 Rev (4), Issue Date 1 January 2010 Document No. ED/L01/007, Issue No. 1 Rev (3), Issue Date 1 January 2006 Document No. ED/L01/007, Issue No. 1 Rev (2), Issue Date 1 October 2003 Document No.

2 ED/L01/007, Issue No. 1 Rev (1), Issue Date 27 May 2001 Document No. ED/L01/007, Issue No. 1 Rev (0), Issue Date 13 December 1998 Changes in Issue 1 Revision 5, 1 January 2014 Incorporates changes to Charge Restriction Conditions Schedule 2 for PC5 and consequential changes elsewhere as per the Bureau s PC5 Final Proposals (Reference No: CR/E02/101) dated 6 November 2013 and to capitalise all defined terms. AADC Water and Electricity Distribution and supply licence Author Document Issue Revision Issue date Approved by AR / MD ED/L01/007 1 5 1 January 2014 NSC Page 3 of 91 Contents Part 1 The licence .. 4 Part 2 Distribution and supply conditions .. 8 Condition 1 Part 2 conditions .. 8 Condition 2 Prohibited activities .. 9 Condition 3 Distribution codes .. 10 Condition 4 Compliance with Transmission Codes and Metering and Data Exchange Code .. 13 Condition 5 Health and safety .. 14 Condition 6 Disposal of assets.

3 15 Condition 7 Provision of information to the Regulation and Supervision Bureau for the Water and Electricity Sector .. 17 Condition 8 Fees .. 18 Condition 9 Separate accounts for separate businesses .. 19 Condition 10 Prohibition of 22 Condition 11 Insurance against third party liability .. 23 Condition 12 Environmental matters .. 24 Condition 13 Electricity and Water regulations .. 25 Condition 14 Demand forecasts and customer research .. 26 Condition 15 Non-discrimination .. 27 Condition 16 28 Condition 17 Customer complaint handling procedures .. 30 Condition 18 Economic purchase .. 31 Condition 19 Provision of services to special customers .. 32 Condition 20 Customer standards and quality of service .. 33 Condition 21 Basis of charging .. 34 Condition 22 Language .. 35 Part 3 Distribution conditions .. 36 Condition 23 Part 3 conditions .. 36 Condition 24 Leakage/loss control.

4 37 Condition 25 Requirement to offer terms for connection .. 38 Condition 26 Charges for connection .. 40 Condition 27 Distribution system information .. 42 Condition 28 Five year planning statement .. 43 Condition 29 Security standards .. 45 Part 4 supply conditions .. 46 Condition 30 Part 4 conditions .. 46 Condition 31 supply 47 Condition 32 supply tariffs .. 48 Condition 33 Payment of bills and disconnection .. 50 Condition 34 Customers in default .. 52 Condition 35 Efficient use of Electricity and Water .. 53 Condition 36 Register of customers .. 55 Schedule 1 The Authorised Area .. 56 Schedule 2 Charge restriction conditions .. 57 AADC Water and Electricity Distribution and supply licence Author Document Issue Revision Issue date Approved by AR / MD ED/L01/007 1 5 1 January 2014 NSC Page 4 of 91 Water and Electricity Distribution and supply licence Part 1 The licence 1. Grant of licence The Bureau hereby grants licence to Al Ain Distribution Company to carry out in the Authorised Area the activities referred to in paragraph 4 below.

5 This present licence supersedes any previously issued licences to Al Ain Distribution Company . This licence is granted in exercise of the powers conferred on the Bureau by Article (82) of the Law. 2. Conditions of licence This licence is granted subject to the Conditions in Parts 2, 3 and 4 to this licence and for the period referred to in paragraph 3 below. This licence is subject to modification in accordance with its terms or with Article (98) of the Law. This licence is also subject to revocation in accordance with Condition 16 below. 3. licence term This licence shall come into force on the Effective Date and, unless revoked in accordance with the provisions of Condition 16 shall continue until it is terminated by not less than 25 years notice in writing given by the Bureau to the Licensee. 4. Licensed Activities The activities permitted to be carried out by the Licensee pursuant to this licence in respect of the Authorised Area are: a) the Distribution of Electricity ; b) the Distribution of Water ; c) the supply of Electricity to premises; and d) the supply of Water to premises and/or persons.

6 AADC Water and Electricity Distribution and supply licence Author Document Issue Revision Issue date Approved by AR / MD ED/L01/007 1 5 1 January 2014 NSC Page 5 of 91 5. Definitions The following words and expressions used in this licence shall have the following meanings: Accounting Standards: accounting standards approved by the Bureau from time to time; Affiliate: in relation to the Licensee means any holding Company or subsidiary of the Licensee or any subsidiary of a holding Company of the Licensee; Auditor: means the Licensee's auditor from time to time holding office in accordance with the requirements of article 144 of the Commercial Companies Law; Authorised Area: means the area from time to time described in Schedule 1; Bureau: means the Regulation and Supervision Bureau for the Water and Electricity Sector; Effective Date: means 1 January 1999; Electricity Distribution Business: means the authorised business of the Licensee or any Affiliate or Related Undertaking in the planning, development, construction or maintenance of the Licensee's Electricity Distribution System and the operation of such Distribution System for the Distribution of Electricity , including any business for the provision of connections to the Licensee's Distribution System and for the provision of metering equipment to meter distributed Electricity , but not a Separate Business or any other business of the Licensee or Affiliate; Electricity Distribution Code: means the Distribution code or codes of that name required to be prepared pursuant to Condition 3 as from time to time revised with the approval of the Bureau.

7 Electricity supply Business: means the authorised business of the Licensee or any Affiliate or Related Undertaking in the purchase of Electricity for sale to customers, making arrangements for transmission and Distribution of Electricity to customers by the Licensed Transmission Operator and Electricity Distribution Business, the sale of Electricity to customers, customer meter reading, customer billing, bill collection and maintenance of customer records; Law: Law No (2) of 1998 concerning the Regulation of the Water and Electricity Sector in the Emirate of Abu Dhabi; Licensed Activities: the activities permitted to be carried out by the Licensee pursuant to the terms of this licence ; Licensed Operators: the Abu Dhabi Water and Electricity Company or any person (other than the Licensee) who is authorised to desalinate, transmit, store, distribute or supply Water or generate, transmit, distribute or supply Electricity ; Licensed Transmission Operator: means a person authorised by licence granted under the Law to transmit Electricity and/or Water ; AADC Water and Electricity Distribution and supply licence Author Document Issue Revision Issue date Approved by AR / MD ED/L01/007 1 5 1 January 2014 NSC Page 6 of 91 Licensee: the person to whom this licence is granted.

8 Licensee's Distribution Systems: means a) the system consisting (wholly or mainly) of Water pipes owned or operated by the Licensee and used for the Distribution of potable Water to the point of delivery to premises or customers and includes any plant and equipment, including metering equipment, owned or operated by the Licensee in connection with the Distribution of Water ; and b) the system consisting (wholly or mainly) of electrical lines owned or operated by the Licensee and used for the Distribution of Electricity to the point of delivery to premises and includes any plant and equipment, including metering equipment, owned or operated by the Licensee in connection with the Distribution of Electricity . Metering and Data Exchange Code: the code of that name required to be prepared by a Licensed Transmission Operator and approved by the Bureau as from time to time revised with the approval of the Bureau; Operational Balancing Purposes: means a purpose necessarily ancillary to the conduct of the Licensed Activities; Related Undertaking: is in relation to the Licensee any undertaking in which the Licensee has a participating interest, amounting to 30% or more of such undertaking's share capital or in respect of which the Licensee has the right to appoint a majority of the directors of that undertaking; Relevant Distribution System: means the Licensee's Water Distribution System or its Electricity Distribution System.

9 Separate Business: means each of the Electricity Distribution Business, the Electricity supply Business, the Water Distribution Business and the Water supply Business; Transmission Code: means the transmission code or codes of that name required to be prepared by a Licensed Transmission Operator and approved by the Bureau as from time to time revised with the approval of the Bureau; Transfer Scheme: has the meaning ascribed to it in Article (137) of the Law; Water Distribution Business: means the authorised business of the Licensee or any Affiliate or Related Undertaking in the planning, development, construction or maintenance of the Licensee's Water Distribution System and the operation of such Distribution System for the Distribution of Water , including any business for the provision of connections to the Licensee s Distribution System and for the provision of metering equipment to meter distributed Water , but not a Separate Business or any other business of the Licensee or Affiliate.

10 AADC Water and Electricity Distribution and supply licence Author Document Issue Revision Issue date Approved by AR / MD ED/L01/007 1 5 1 January 2014 NSC Page 7 of 91 Water Distribution Code: means the Distribution code or codes of that name required to be prepared pursuant to Condition 3 as from time to time revised by with the approval of the Bureau; Water supply Business: means the authorised business of the Licensee or any Affiliate or Related Undertaking in the purchase of Water for sale to customers, making arrangements for transmission and Distribution of Water to customers by the Licensed Transmission Operator and Water Distribution Business, sale of Water to customers, customer meter reading, customer billing, bill collection and the maintenance of customer records. 6. Interpretation For the purpose of this licence : a) where any obligation of the Licensee is required to be performed within a specified time limit that obligation shall be deemed to continue after that time limit if the Licensee fails to comply with that obligation within that time limit; b) in construing a Condition, the heading or title of any Condition or paragraph shall be disregarded; c) any reference to a numbered Condition or Schedule is a reference to the Condition or Schedule bearing that number or prefix in this licence and any reference to a paragraph is to the paragraph bearing that number or prefix in the Condition or Schedule in which the reference occurs; d) any reference to a Schedule is a reference to the relevant Schedule to this licence .